Audit market structure, fees and choice in a period of structural change: Evidence from the UK – 1998–2003

Abidin, Shamharir; Beattie, Vivien; Goodacre, Alan

doi:10.1016/j.bar.2010.04.002

Cited by 61 publications

(49 citation statements)

References 48 publications

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“…Bigus and Zimmermann, (2008) have demonstrated for the audit market of Germany a high concentration and Big 4 hold a market share of 90%. Abidin et al, (2010) in their research found for the UK audit market an increase of concentration from CR4 = 0.67 to 0.68 (Engagements) and from 0.88 to 0.96 (Fees) respectively. Breitkreuz and Mu ig, (2010) found for the Switzerland audit market that the concentration values remain relatively stable over time, and that the Market share of Big Three form 96% (Fees) and 85% (Engagements) respectively in 2008, and an insignificant market share of Deloitte.…”

Section: Literature Reviewmentioning

confidence: 99%

Structure and Nature of Competition in the Market for Financial Audit Services in Mexico

Toscano

Benau²

2014

JBAR

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The structural paradigm emphasizes that the nature of competition in a market, is closely related to the structure of the market and in particular its level of concentration. The objective of this research work is to present empirical evidence on the structure and nature of competition in the market for financial audit services in Mexico during the period from 2000 to year 2007. To do this, we have calculated several measures of concentration, using a sample of 1,344 financial audit reports of companies that are registered as issuers of shares in the capital market of the Stock Exchange in Mexico. The results show that the market for financial audit market in Mexico is highly concentrated and under the control of a few audit firms, specifically of Large International Firms, better known in the field business around the world as the "Big 4". Also the results show that the nature of the competition in the market for financial audit services in Mexico is that, in imperfect markets, known as an oligopoly.

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Section: Literature Reviewmentioning

confidence: 99%

Structure and Nature of Competition in the Market for Financial Audit Services in Mexico

Toscano

Benau²

2014

JBAR

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“…This is not surprising. It is partly due to new regulations in many countries, but also because directors and auditors responded to public concerns about non-audit services (e.g., Abidin, Beattie, and Goodacre 2010;DeFond and Zhang 2014, 312). There has been extensive audit fee research on the impact of high non-audit fees in relation to audit fees.…”

Section: Issue 3: Ratio Of Non-audit To Audit Feesmentioning

confidence: 99%

Audit Fee Research on Issues Related to Ethics

Hay

2017

Current Issues in Auditing

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SUMMARY Audit fees are related to important ethical issues for auditors. There has been increasing research on audit fees recently, including research on potential ethical risks regarding audit fees, which helps to illuminate some of these professional issues. The International Ethics Standards Board for Accountants (IESBA) is very interested in this area and asked me to prepare a paper reviewing the relevant research. This summary reviews research that became available from 2006 to 2016 on four issues related to audit fees—fee level, dependence, non-audit fees, and firms that have a significant non-audit services business. Examining the research shows consistent evidence about two issues, namely that audit fees for new engagements are lower and that non-audit services affect independence in appearance. There are two further issues about which there is some concern. First, there are occasional studies reporting evidence that non-audit services provided by an auditor are associated with a loss of independence indicated by lower audit quality, even though most research does not support this conclusion. Second, there has been recent concern about growth in non-audit services to non-audit clients and there is some preliminary evidence that audit quality is lower in firms that have more extensive non-audit businesses. In general, although audit fee research does not convey a message that there are widespread ethical problems, the body of research shows that there are some risk areas.

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“…The provision of specialized services permits a better understanding of client demands (Lee 2013). Specialization provides assurors with technical capabilities associated with greater quality (Abidin et al 2010). Specifically, industry specialization is evidenced as a factor associated with higher assurance quality (Martínez-Ferrero et al 2018).…”

Section: Development Of a Quality Indexmentioning

confidence: 99%

A Provider’s Approach to the Assurance Market of Sustainability Reports in Spain

Ogando

Blanco

Souto

2018

Administrative Sciences

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Abstract:The assurance of sustainability reports faces significant challenges that arise from the characteristics of sustainability information and the regulatory context in which it is developed. This recently growing service has favoured the creation of a rapidly evolving market, a complex professional field in its early stages of development and study. The aim of this paper is to analyse whether the use of international standards or the profile of the provider performing the service affects assurance process and quality. To this end, we applied a novel methodology for this field: a survey through written questionnaires. The use of a primary information source allows us to gain insight into the topic, beyond other visible aspects often used in previous literature (e.g., assurance statement contents). We tested our hypotheses on a sample of Spanish accounting and consulting firms. Our results show that neither the use of international standards nor the provider's professional background has any effect on assurance process and assurance quality. However, the way the professional perceives the developed service does have an impact on quality.

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Audit market structure, fees and choice in a period of structural change: Evidence from the UK – 1998–2003

Cited by 61 publications

References 48 publications

Structure and Nature of Competition in the Market for Financial Audit Services in Mexico

Structure and Nature of Competition in the Market for Financial Audit Services in Mexico

Audit Fee Research on Issues Related to Ethics

A Provider’s Approach to the Assurance Market of Sustainability Reports in Spain

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